(This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this document and the Japanese original, the latter shall prevail.)
Summary of Consolidated Financial Results for the Nine Months ended December 31, 2023 (Japanese GAAP)
February 14, 2024
Company name: Digital Media Professionals Inc.
Listing: Tokyo Stock Exchange
Code number: 3652
URL: https://www.dmprof.com/en
Representative: Tatsuo Yamamoto, Chairman, President and CEO
Contact person: Tsuyoshi Osawa, Senior Managing Director, General Manager of Corporate Planning Dept.
Tel. (03) 6454 - 0450
Scheduled date of filing Quarterly Securities Report: February 14, 2024
Scheduled date of payment of cash dividends: Supplementary materials for the quarterly financial results: Yes
Briefing session on the quarterly financial results: No
1. Consolidated financial results for the nine months ended December 31, 2023 (April 1, 2023 through December 31, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes)
Net sales

Operating income% Millions of yen% Millions of yen
2,292
45.1261264－9 months ended Dec 31, 2022
1,579
23.5-60－-58
Reference) Comprehensive income: 219 million yen as of Dec 31, 2023; -55 million yen as of Dec 31, 2022
Millions of yen

9 months ended Dec 31, 2023

Net income per shareyen
70.58-19.139 months ended Dec 31, 2023
9 months ended Dec 31, 2022

Net income attributable toowners of parent

Ordinary income%－－Millions of yen

221-60%－－Net income per sharedilutedyen－－(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

As of December 31, 2023
3,893
3,343
As of March 31, 2023
3,842
3,124Reference) Shareholders' equity: 3,343 million yen as of Dec 31, 2023; 3,124 million yen as of March 31, 2023

%
85.9
81.3

2. Cash dividends
Annual dividends per share
2Q-end3Q-endYear-end
yen
yen
yen
Year ended March 2023
0.00
0.00
Year ending March 2024
0.00
Year ending March 2024 (Forecast)
0.00Note) Revision of dividends forecast during the period: None
1Q-endyen-Total
yen
0.00
0.00

3. Forecasts of consolidated operating results for the year ending March 31, 2024 (April 1, 2023 through March 31, 2024)
Net Sales

Operating income

Millions of yen% Millions of yen
Full year
2,95027.0240Note) Revision of forecasts during the period: None

% Millions of yen
786.9
240-1-(Percentages indicate year-on-year changes.)
Net income attributable to Net income
owners of parent
per share% Millions of yen%Yen
732.9
200786.2
63.59

Ordinary income

Notes:1. Changes in significant subsidiaries during the current consolidated cumulative period (changes in specified subsidiaries
accompanying changes in the scope of consolidation): None
2. Application of accounting treatments specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies(1) Changes in accounting policies resulting from revisions of accounting standards: None
(2) Changes in accounting policies except (1): None
(3) Changes in accounting estimation: None
(4) Restatement: None
4. Number of shares issued(1) Number of shares issued at the end of the period (including treasury shares)
As of Dec 31, 2023

3,152,400 shares

As of March 31, 2023

3,152,400 sharesAs of March 31, 2023

7,166 shares(2) Number of treasury shares at the end of the period
As of Dec 31, 2023

7,240 shares(3) Average number of shares issued during the period
9 months ended Dec 31, 2023

3,145,193 shares

9 months ended Dec 31, 2022

3,147,278 shares

Note: Explanation regarding the appropriate use of business forecasts and other special notes
The forward-looking statements such as business forecast in this document are based on information currently available tothe Company and on certain assumptions deemed to be reasonable. The Company does not guarantee the achievementof the forecasts. Actual results may differ significantly for a number of reasons.
For the conditions and notes on the use of business forecast, please refer to"1. Qualitative information on quarterly financial results (3) Consolidated financial forecasts and other forward-looking statements."-2-

1. Qualitative information on quarterly financial results(1) Financial position and operating results
During the nine-month period ended December 31, 2023, the Japanese economy experienced a moderate recovery
supported by revitalized socioeconomic activities, partly due to the change in the classification of new coronavirus
infections from category 2 to category 5 on May 8. However, the impacts of the continued weak yen and rising prices
and energy costs on the economy and people's lives became apparent. The global economy also showed signs ofrecovery in general, but in addition to the effects of monetary tightening, downside risks such as concerns about thefuture of the Chinese economy and the current increase in geopolitical risks need to be kept in mind.
The semiconductor industry, to which our group belongs, saw a negative market growth mainly due to reduced demand
for memory in 2023. In 2024 and the medium term, however, demand is expected to grow for IoT where all things areconnected to the Internet, artificial intelligence (AI), big data, next-generation high-speed communication standards,and automatic driving.
In the field of AI/visual computing, which is the business domain of our group, the acceleration of innovation and theincreasing roles of AI are expected in solving social and environmental issues, including a decrease in the working
population due to declining birthrate and aging population and climate change, and in realizing a safe and securesociety.
In this environment, our group strives to create innovative products and services that drive value to our stakeholders
and solve real-world problems through the power of image intelligence, under the Purpose of "Making the ImageIntelligent." In the core fields of safety and robotics, we will maximize customer lifetime value (LTV) by providing added
value through the development of IP core license business, product business, and professional service business, basedon our integrated development system from algorithms and software to our strength, hardware, throughout thedevelopment lifecycle of customer products and services from the planning stage to mass production.

As for specific initiatives and achievements in our focused fields during the third quarter of the current fiscal year, firstly,in the safety field, we carried out professional services for existing customers for safe driving assistance and earned
recurring revenue from existing projects from the edge to the cloud. In addition, PoC projects in the broader safety field
are underway for car license plate recognition, human attributes/line of flow recognition, headcount counting, etc.,
utilizing DMP's high AI image recognition capabilities.
In the robotics field, in addition to carrying out professional services for existing customers, we have promoted activities
to acquire new licenses for autonomous robots through the development of demonstration models and have achieved
positive results. In the business of vision systems for picking robots by Cambrian Inc., a capital and business partner,
we made progress in product shipments and business projects aimed at reducing labor and improving productivity forend customers in the manufacturing industry, particularly the automotive industry by taking advantage of the strengths
in recognition accuracy for transparent and glossy parts and robustness against environmental changes, such as
ambient light. We also saw active business progress with customers in the pharmaceuticals, cosmetics, and foodindustries such as installation in in the Dynamic Cell Production System at the Odawara Plant (Kao Cosmetic Products
Odawara) of Kao Corporation. We acquired a portion of Cambrian's Series Seed Plus Preferred Stock (amount paid:
about 480 thousand US dollars) on November 29, 2023, in order to financially contribute to enhancing Cambrian'sdevelopment capabilities and the competitiveness of products and technologies, and to further strengthen the strategic
partnership.
In the amusement field, we continued mass production shipments of our image processing semiconductor, RS1, forpachislot machines, including smart pachislots with strong utilization and pachinko machines. We continue to aim to-3-

expand our share in the market segment where we can demonstrate the superiority of this unique 2D/3D integratedchip.
We also participated in various exhibitions to demonstrate our products, services, and technologies, mainly in the fields
of safety and robotics, and focused on attracting new customers.

With regard to business results for the nine-month period ended December 31, 2023, in the product business, wecontinued mass production shipments of the RS1 image processing semiconductor and shipped Cambrian Vision
Systems and camera modules for drone mass production. In the IP core license business, we recorded AI/GPU runningroyalty income, recurring revenue in the safety and robotics fields, and maintenance/support revenues. In theprofessional service business, we provided AI/GPU contracted development services.

As a result, we recorded net sales for the nine-month ended December 31, 2023 of 2,292 million yen (up 45.1% fromthe same period of the previous year), operating income of 261 million yen (operating loss of 60 million yen for thesame period of the previous year), ordinary income of 264 million yen (ordinary loss of 58 million yen for the same
period of the previous year) and net income attributable to owners of the parent of 221 million yen (net loss of 60 millionyen for the same period of the previous year).

As our group operates in a single segment, segment information is not provided, but a summary of results by businessis as follows.
a) IP core license businessNet sales amounted to 135 million yen (158 million yen in the same period of the previous fiscal year), mainly due tothe recording of recurring revenue in the safety and robotics fields and maintenance/support revenues in addition toAI/GPU running royalty income for digital equipment such as digital still cameras, 4K TVs and office automationequipment.
b) Product businessNet sales amounted to 2,105 million yen (1,343 million yen in the same period of the previous fiscal year) due to sales
from Cambrian Vision Systems and camera modules for drone mass production in addition to the strong mass
production shipments of the RS1.
c) Professional service businessNet sales amounted to 51 million yen (78 million yen in the same period of the previous fiscal year) for providing AI
contracted development services in the safety and robotics fields and GPU contracted development services.

A summary of results by field is as follows.
a) Safety fieldNet sales amounted to 41 million yen (117 million yen in the same period of the previous year), mainly due to therecording of recurring income and maintenance/support revenues in the IP core license business and providing
professional services.
b) Robotics field
Net sales amounted to 115 million yen (86 million yen in the same period of the previous fiscal year) mainly due to therecording of sales of Cambrian Vision Systems and camera modules for drone mass production in the product businessand providing professional services.

-4-c) Amusement field
Net sales amounted to 2,018 million yen (1,291 million yen in the same period of the previous year), mainly due to themass production shipments of RS1.
d) Other
Net sales amounted to 117 million yen (83 million yen in the same period of the previous fiscal year), mainly due to therecording of GPU running royalty income for digital equipment and maintenance/support revenues.

(2) Financial position
Overview of assets, liabilities and net assets(Assets)
Current assets at the end of the third quarter amounted to 3,391 million yen, down 292 million yen from the end of theprevious fiscal year mainly attributable to a decrease in accounts receivable and contract assets (down 549 million yen)
and an increase in merchandise and finished goods (up 95 million yen). Noncurrent assets amounted to 502 million
yen, up 344 million yen from the end of the previous fiscal year mainly attributable to an increase in investment securities(up 370 million yen) included in the investments and other assets.
(Liabilities)
Current liabilities and noncurrent liabilities at the end of the third quarter amounted to 550 million yen, down 167 million
yen from the end of the previous fiscal year mainly attributable to a decrease in accounts payable (down 204 millionyen).
(Net assets)
Net assets at the end of the third quarter amounted to 3,343 million yen, up 219 million yen from the end of the previous
fiscal year mainly attributable to an increase in retained earnings (up 221 million yen).
As a result, the equity ratio was 85.9%.

(3) Consolidated financial forecasts and other forward-looking statements
We achieved record-high net sales in the nine-month period ended December 31, 2023, mainly due to brisk sales in
the product business and the amusement field. Operating income, ordinary income, and net income attributable toowners of the parent have already exceeded the full-year forecast we had upwardly revised on November 13, 2023.
In the fourth quarter, we expect continued strong volume shipments of "RS1" image processing semiconductors for theamusement market, as well as license and professional service revenues in the safety field, product sales andprofessional service revenues in the robotics field, and steady GPU-related license revenues.
We are closely examining the outlook for future business performance, so the full-year forecast announced on
November 13, 2023 remains unchanged at this stage.
we will promptly announce revisions to the forecast if such revisions become necessary.
Actual performance may differ significantly from the forecast figures due to various factors.

-5-2. Consolidated quarterly financial statements and major notes(1) Consolidated quarterly balance sheets

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade and contract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for product warranties
Other
Total current liabilities
Non-current liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive incomeValuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-

Previous year
(As of Mar 31, 2023)(Yen thousand)Current Q3 period(As of Dec 31, 2023)

2,435,996
833,518
300,000
22,874408
42,583
48,427
3,683,809

2,609,160
284,067
300,000
117,985
2,545
39,58237,901
3,391,243

65,837
24,11968,342
158,299
3,842,109

52,27512,753
437,562
502,591
3,893,835

553,241
23,737
17,351105,702
700,031

348,700
45,350
10,184
127,990532,225

17,926
17,926
717,957

18,124
18,124550,349

1,838,882
1,858,093-575,090-1,724
3,120,161

1,838,882
1,858,093-353,091-2,016
3,341,868

645
3,344
3,990
3,124,151
3,842,109-1,4273,044
1,617
3,343,485
3,893,835

(2) Consolidated quarterly statements of income and comprehensive income (nine months ended December 30, 2023)
Consolidated quarterly statements of income(Yen thousand)Previous Q3 period (YTD)

Current Q3 period (YTD)(From Apr 1, 2022

(From Apr 1, 2023

To Dec 31, 2022)

To Dec 31, 2023)

Net sales

1,579,826

2,292,669

Cost of sales

1,011,726

1,338,752

Gross profit

568,099

953,917

Selling, general and administrative expenses

629,052

692,552

Operating income/loss (-)-60,953

261,364

Interest income

1,048

475

Foreign exchange gains

1,969

2,376

Total non-operating income

3,018

2,852

548

-Non-operating income

Non-operating expenses
Loss on redemption of securities
Miscellaneous loss

91557

1

Ordinary income/loss (-)-58,493

264,215

Income/Loss (-) before income taxes-58,493

264,215

1,717

42,217

Total non-operating expenses

Income taxes - current
Total income taxes

1,717

42,217

Income/Loss (-)-60,210

221,998

Income/Loss (-) attributable to owners of parent-60,210

221,998

Consolidated quarterly statements of comprehensive income(Yen thousand)Previous Q3 period (YTD)

Current Q3 period (YTD)(From Apr 1, 2022

(From Apr 1, 2023

To Dec 31, 2022)

To Dec 31, 2023)

Income / Loss(-)
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests-7--60,210

221,998

1,000-2,073

3,615

-299

4,615

-2,372-55,594

219,625-55,594

219,625--

(3) Notes to quarterly consolidated financial statements(Notes on going-concern assumption)
Not applicable(Notes on significant changes in the amount of shareholders' equity)
Not applicable(Change in accounting policy)
Not applicable(Segment information, etc.)
The Group's business is comprised of a single segment, the development, manufacture, and sale of IP cores and otherproducts, as well as related operations. Therefore, this information is omitted from this report.

-8-3. Other(1) Significant events on going-concern assumption
Not applicable(2) Recent quarterly business performance
Fiscal year ended March 31, 2024
First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Apr 2023 - Jun 2023

Jul 2023 - Sep 2023

Oct 2023 - Dec 2023

Jan 2024 - Mar 2024

Net sales

699,165

742,931

850,573-

Gross profit

256,344

342,473351,584-

Operating income

30,196

104,590

126,578-

Ordinary income

32,833

107,336

124,045-

Income before incometaxes

32,833

107,336

124,045-

Net income

26,411

94,614

100,972-

Net income attributable toowners of the parent

26,411

94,614

100,972-

Comprehensive income

26,65894,71098,255-8.40 yen

30.08 yen

32.10 yen-(thousand yen)

Net income per share

End of 1st QuarterEnd of 2nd QuarterEnd of 3rd QuarterEnd of 4th Quarter

Total assets

3,684,722

3,691,4643,893,835-Net assets

3,150,810

3,245,229

3,343,485-

1,001.77 yen

1,031.82 yen

1,063.06 yen-First Quarter
Apr 2022 - Jun 2022

Second Quarter
Jul 2022 - Sep 2022

Third Quarter
Oct 2022 - Dec 2022

Fourth Quarter
Jan 2023 - Mar 2023

Net sales

387,671537,683

654,471742,286

Gross profit

119,257

189,660

258,820

292,576

Operating income/loss (-)-89,267-13,573

41,88788,012

Ordinary income/loss (-)-83,735-10,570

35,81387,307

Income/loss (-) before
income taxes-83,735-10,570

35,81387,307

Net income/loss (-)-84,308-11,143

35,24082,780Net income/loss (-)-84,308-11,143

35,24082,780-79,661-10,990

35,057

84,372-26.79 yen-3.54 yen

11.20 yen26.32 yen

Net assets per share

Fiscal year ended March 31, 2023
(thousand yen)

attributable to owners of
the parent
Comprehensive income
Net income/loss (-) per share

End of 1st QuarterEnd of 2nd QuarterEnd of 3rd QuarterEnd of 4th Quarter

Total assets

3,463,998

3,485,580

3,557,274

3,842,109

Net assets

3,015,821

3,004,830

3,039,888

3,124,151Net assets per share958.23 yen

954.74 yen

965.88 yen

993.30 yen-9-